Paycom Software, Inc. (NYSE: PAYC) (“Paycom”), a leading provider of comprehensive, cloud-based human capital management software, released its annual report on HR trends and priorities, revealing improvements in HR technology as the top priority moving into 2026.

The survey of over 1,000 HR professionals conducted by PSB Insights found that 43% plan to prioritize HR technology upgrades and improvements in the coming year. Furthermore, 4 in 5 HR professionals anticipate their organization will purchase new HCM software over the next 12 months.

Outdated and repetitive HR workflows are a significant contributor to this trend; nearly one-third of HR professionals identified the time spent on repetitive tasks as a major factor shaping their organization’s priorities for 2026. The survey also revealed an increased demand for AI, with 15% of HR professionals ranking the increased use of AI in HR functions as their top priority for 2026.

“The need for automated, impactful HR technology has never been greater,” said Shane Hadlock, chief client and technology officer at Paycom. “As we head into 2026, organizations are recognizing the need to upgrade from outdated systems and invest in solutions that streamline repetitive work.”

HR professionals also struggled with inefficient workflows and unreliable data in 2025. This pain point, which influenced 2026 goals for 28% of respondents, was caused by a lack of centralized HR tools or platforms.

In a study conducted by Forrester Consulting earlier this year, HR and payroll leaders reported their organizations use an average of 6.17 providers to manage the employee life cycle, with 77% of respondents storing data across multiple HCM databases. Because of these challenges, 80% of respondents said disparate or duplicate employee data negatively impacted their ability to create accurate workforce reports.*

In effect, businesses may see the tendency toward single-database solutions shape HR technology upgrades in 2026. Over 91% of respondents in Forrester’s study earlier this year expressed interest in a single HCM software built on one database when asked. Additionally, 84% believed this would positively impact their business goals, with improved data accuracy being the top expected benefit.

Paycom is the only truly single database in the HCM industry. Paycom’s software enables a seamless flow of data and communication between tools, which is the only way to achieve true HR and payroll automation.

“We should be integrating new software that makes manual tasks more automated,” one respondent told PSB Insights. “We need to reduce manual tasks in the HR department so that the process is more seamless, and we can better track changes in needs.”

HR technology encompasses just a few organizational priorities for 2026. According to PSB Insights, HR’s top five priorities include:

1. Seeking HR technology upgrades/improvements
2. Enabling employee development and upskilling/reskilling
3. Increasing incorporation of AI within HR functions
4. Enhancing employee experience, engagement and well-being (including culture initiatives)
5. Attracting and retaining top talent

Paycom commissioned PSB Insights in July 2025 to survey 1,000 HR professional decision-makers on their outlook for 2026. These individuals work in human resources and have decision-making authority over their company’s HR and payroll platform. Respondents represented a variety of industries and company sizes across the U.S.

To learn more about HR trends and priorities for 2026, view our full guide.

^*“Single-Database HCM Solutions Drive Cross-Business Success,” a commissioned study conducted by Forrester Consulting on behalf of Paycom, May 2025.

About Paycom

Paycom Software, Inc. (NYSE: PAYC) simplifies business and employees’ lives through automated, command-driven HR and payroll technology that revolutionizes data access. From hire to retire, Paycom’s employee-first technology leverages AI and full-solution automation to streamline processes and drive efficiencies in a truly single database, providing a seamless experience for Paycom’s clients and their employees. With its industry-first AI engine, IWant™, Paycom provides instant and accurate access to employee data without having to navigate or learn the software. For over 25 years, Paycom has been recognized for its innovative technology and workplace culture while serving businesses of all sizes in the U.S. and internationally.

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